Indian crypto exchanges struggling to survive, attempting to prolong operations

Indian cryptocurrency exchanges are facing a difficult time as they try to extend their financial runways and stay afloat. To achieve this, they are cutting costs, renegotiating contracts with partners, suspending employee pay hikes, conducting layoffs, exploring new revenue models, and rebranding themselves. CoinDesk spoke to employees and senior executives at six major Indian crypto platforms, who revealed that their runways range from 21 months to four years. However, the imposition of stiff taxes on crypto profits and transactions by the Indian government has made their survival challenging. The taxes have led to a crypto “brain drain,” plummeting crypto trading volumes, and a “shadow ban” that has cut off banking access to crypto exchanges. India’s cryptocurrency industry’s advocacy body was disbanded, and enforcement agencies were investigating at least ten crypto exchanges for allegedly assisting foreign firms launder money via crypto. Despite this, India has prioritized framing globally coordinated rules for the crypto sector as the president of the Group of 20 (G-20) in 2023. Indian exchanges are taking various steps to guard against the scenario where the tax regime stays the same, including diversifying, investing heavily in innovation and technology, and engaging lawmakers through the industry’s policy advocacy body.This piece of HTML describes how several Indian cryptocurrency exchanges are dealing with the current bear market and laying off staff. Despite these challenges, some exchanges like WazirX have a 21-month runway and are focusing on renegotiating contracts with partners to survive. Their strategy is to keep costs low, attract lucrative partnerships, and stay focused on crypto. Similarly, ZebPay and BuyUCoin are also trying to increase lending value and concentrate on user growth, hoping to use profits made during previous bull runs to survive. On the other hand, CoinSwitch has pivoted from being a crypto exchange to a crypto investment platform and is excited to grow and evolve with its 19 million registered users. Finally, Giottus, which is recognized for its staking service and multilingual options, says it has a two-year runway under current conditions and is focusing on operational excellence and reducing perceived risks associated with exchanges.

Subburaj mentioned that Giottus has a small marketing team even during times of high market activity, and like other companies, they have collaborated with TaxNodes to improve their operations.

Read More: Indian Authorities Asked to Restore Crypto Exchanges’ Access to UPI

This article was edited by Nikhilesh De and Sandali Handagama.

We will continue to update Phone&Auto; if you have any questions or suggestions, please contact us!


Was this article helpful?

93 out of 132 found this helpful

Related articles

    Discover more


    Fear Blackrock ETF?

    Our Head of Research is examining the possible effects on financial exchanges if the Blackrock Bitcoin ETF is authori...


    From Peak to Valley Zhao Changpeng's Roller Coaster Journey on the Chinese Wealth List

    Explore how Zhao Changpeng went from ordinary to extraordinary.


    Arthur Hayes predicts wealth transfer behind Middle East conflict People will abandon US bonds and flock to Bitcoin

    After Biden's speech, Bitcoin and gold are rising against the backdrop of a sharp decline in long-term US Treasury bo...


    Binance's Head of Product Leaves Amid Growing Executive Exodus

    Mayur Kamat's departure is part of a positive trend that includes the departures of Chief Strategy Officer Patrick Hi...


    Singapore bans crypto lending and staking for retail investors.

    The chief financial watchdog of Singapore has made the decision to implement a prohibition on lending and staking for...


    What are the obstacles on the road to realizing Hong Kong's dream of becoming a cryptocurrency hub?

    Hong Kong has big dreams for its cryptocurrency and Web3 industry, but the slow start of new regulatory measures is m...